Daily Stock Pick of the Day - Mon., Sept 27, 2010

The bulls came roaring back today, rallying into the weekend and capping a fourth week of gains.  The Dow was up almost 200 points and closed at 10,860. All 30 Dow components were higher, led by Caterpillar (CAT)  , Boeing (BA) which got the benefit of a weaker dollar.  The S&P 500 and the Nasdaq were up more than 2%. The S&P closed at 1,148 and the Nasdaq closed at 2,381.  The VIX plunged more than 8 percent to trade slightly below 22.  Gold also hit a new record high, intraday, at almost $1300 per ounce.  The backstory on this is that more "quantitative easing" by the Fed could bring on more volatility in currency markets. 

Friday's economic news revealed a dip of 1.3% in August for durable goods orders (July revised was .7%)  New home sales for August showed no change from July.  The Commerce Dept reported a seasonally adjusted annual pace of 288,000, down 29% from the same month one year prior.

Yesterday's stock pick was Wynn Resorts (WYNN).  Continuing yesterday's gaming theme, today's pick is Las Vegas Sands (LVS).  Like Wynn, LVS owns and operates different resorts worldwide.  They own and operate several properties in Las Vegas, NV such as The Venetian, The Palazzo, The Sands Expo and Convention Center.  They also own and operate properties in Macao and they are developing properties in Singapore.  LVS closed today at $33.73 and it's not a bad entry point from here.  I think this stock could ride the steam of the current rally and even with a brief pullback, it could test the $38-$40 range by the end of the year.  Sales growth over the past 12 months is running about 51% -- which is excellent.  Certainly, the exposure to the Macao and Singapore customers will prove invaluable as customer here in the states continue to languish in the current economic conditions.

As always, stay cautious.  Spend some time this weekend and checkout Wall Street Survivor below.  It's a great way to learn how to trade stocks, without the risk!  You can sign up for free and they have a number of contests available each month.  You can play for bragging rights or cold cash!  Check it out!


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